Trade Union Information No. 7, 1979

A43=tb

No

7/1979

trade union information

TRADE UNION BULLETIN

liBRARY

PUBLISHED BY THE SPOKESMAN'S GROUP AND DIRECTORATE-GENERAL FOR INFORMATION:

TRADE UNIONS AND OTHER PRIORITY MILIEUX

C 0 N T E N T S

1. Statement by Mr Guido Brunner, Commissioner for Energy,

at a press conference in Brussels,

13

June

1979

2.

Commission's panel reports on an energy efficient society

3.

Statement by

Commi~sioner

Guido Brunner on the publication

of the Saint-Geours Report on an "Energy Efficient Society"

4.

Reorganisation of the French oil monopoly

5.

New ways to save energy - Commission

semina~

in Brussels

6.

Commission signature of I.E.A. implementing agreement on

the establishment of a Biomass conversion technical

inform~tion se~vice

7.

BEUC Council issues statements on the energy situation

8.

New action programme for a consumer protection and

information policy propostd

9.

Irish Congress of Trade Unions Annual Conference,

Bundoran,

3-6

July

1979

10.

British trade union visits to Brussels

11.

aritish trade unions oppose proposed changes in Labour

Legislation

12.

ETUC/UNICE meeting, July

1979

13.

Letter from the ETUC to Members of the European Parliament

at its opening following the first European elections

X/290179-EN

1. STATEMENT BY MR GUIDO BRUNNER, COMMISSIONER FOR ENERGY, AT A PRESS CONFERENCE IN BRUSSELS, 13 JUNE 1979

The Commission today approved the energy objectives for 1990 and the third report on the Community's energy savings programme. The two themes complement one another.

1. In our energy objectives for 1990, we are trying to take a Long term view of market developments and energy production. They should help to guide both markets and governments in drawing up their ptilicies. This is

especially important at a time when we ~ill have to deal with a number of uncertainties in the energy field worldwide. It is also important because we shall have to make enormous efforts to deal with energy problems.

Just think of the economic and social burdens alone that will have to be coped with. In Europe, every percentage point of productivity growth could make 250 000 jobs superfluous; in the next ten years the number of people of working age in Europe is expected to grow by about one percent instead of 0.2 percent for the population as a whole. Energy supply as well as the changing pattern of our industrial energy structures could determine the Level of employment or unemployment for our people.

World energy prices have been developing unfavourably from the European point of view. A price rise by the oil producers of 25 percent means a reduction of purchasing power in the European Community of the same order that a price rise of 100 percent entailed in 1973 Can amount of about 11 thousand million dollars). We can counter this development only by enormous investments in the field of energy. In the years until 1990 we shall need to invest every year some 50 thousand million dollars, and changes in the habits of European consumers will be required in order to finance this. ALL these Long-term targets require swift decisions and what is not invested in right now will not exist in 1990.

At the same time the Report on Energy Saving Programmes draws up a balance of what has been achieved. In many respects we have been doing quite well.

For example in 1977 we saved eight percent of our energy needs. 2. The main targets can be summarised as follows:

a) We want to reduce the present relationship between economic growth and energy consumption from one to 0.7 or Less in 1990.

b) We must get 75 percent of our electricity production from coal and nuclear by 1990. To do this, coal consumption must be raised by 25 percent.

c) We have to freeze oil imports at 470 million tonnes up to 1990. This will require great additional efforts.

In energy savings, we want by 1980 <next year) to do the following:

1) Energy savings efforts of all governments should be drawn up so as to have comparable effects in all Member States.

2) I shall set up talks with all European motor manufacturers with the aim of developing cars and commercial vehicles which use Less fuel. This must be done in conjunction with th~ industrial policy aims set out for the motor industry by Commissioner Davignon.

2.COMMISSION'S PANEL REPORTS ON AN ENERGY EFFICIENT SOCIETY

In the nuclear h-.arings chaired by Commis~ioner Guido Brunner in the winter of

,1977178 it became apparent that there was an urgent need ~or a longer term policy to move towards an energy efficient society. One conclus1on was ~he setting up by commissioner Brunner of a division responsible for energy sav1nq within

the-Directorate-General for Energy. Vice-President Lorenzo Natali has ste~pe~ up wor~ on this subject within the Environmental and Consumer Protection ServJce. As a • further consequence the Commission decided, as p~oposed ~Y Mr Brunner and Mr Nata~ to ask a panel ~f high-level·experts <annex 1) under the chairmanship of Mr Jean

Saint-Geours to examine the implications of a more rapid move towards an energy efficient society.

In setting up the panel, the Commission was aware that this problem raised issues which went beyond the scope of energy saving programmes as they are generally thought of today, and that a much wider examination was required, drawing on the expertise not only of energy experts, but also of economists, politicians, trade unionists and environm~ntalists.

The report is now available. This is the first time that a rigorous analysis of the technical potential for saving energy has been properly placed in its economic, institutional, cultural and social context. The conclusion is that the challenge of an energy-efficient society is one that society can meet ~ithout imperilling its values,its traditions

or

the well-being and liberties of its citizens. Success depends upon the individual initiative and responsibility shown by households and enterprises in response to a proper understandir.g of their situation, and on a tolerance of plural forms in society. It is hard to imagine an energy-efficient society being arranged successfully from the centre.

There is no Question of renouncing economic growth but of redirecting its content and its quality. Indeed low rates of economic growth will retard the changes and renewals which are necessary to move towards a more

energy-efficient society. But to be sustainable, rapid economic growth, in future, must be based on a more complete and fundamental policy for energy use than has yet been attempted~

The report presents a well defined picture of what such a complete an funda-mental policy might look like. There are gaps to be filled, but the basis for action is laid. It remains to build the political consensus needed for the pursuit of a consistent, long-term effort. An outline of the scope and conclusions of the report by Mr. Saint-Geours is attached (Annex 2>.

The report will be discussed within the Commission, with the Governments of our Member States, and ~ith the European Parliament. But the Commission also attac~~ the greatest importance to encouraging general participation in a wide-ranging public debate about the adaptations required of our societies in the next twenty years, and the economic, social and cultural environment which can facilitate them.

It seems in fact and this is our first major conclusion -that the gravity of th~ risk being run by .Eurooe as ~ res~l~ of her depen-dence on external supplies. requires a pol1cy for rat1on~l1Z1ng the use of energy which is especially vigorous and compl:te •. The lnddcquacy of the proaress made in this direction in the last f1ve years lends support to this view.

It results fron studies made of the technical scope for re-ducing energy consumption that the potential for improvement is considerable given the present state of the art -estimated as savings in consumption of 15 % to 50 % depending on the secto~. The development of this resource is not, therefore, a futile exc~cise. That is our second ~ajor conclusion.

The third conclusion relates to economic growth : Europe has an overriding need for sustained economic growth - at a rate of about 4 X a year- at least until 1990, to create sufficient employment and to adapt its production system to the new conditions of international co~petition. But it is not possible to satisfy this requirement - to be certain of a healthy, sufficient and durable growth - unless, at the same time, the means are truly in placP. to minimize the. consumption of energy.

Equally, however, it is difficu~t and very time-consuming to make those means operational if the economy is not developing at a sa-tisfactory rate. A greater efficiency in the use of energy is, to a large extent, determined by tlte renewal of the stock of buildings, of machines and of vehicles, as well as by the introduction of innovatory methods.

In short, for the relationship often put forward which as-serts a link between a high level of economic growth and an intensive use of energy, it is necessary and it is possible to substitute a conditional interrelationship between such a rate of growth and as efficient a use of energy as is possible.

But the existence of tnis important technological potential and of the above economic relationship does not guarantee, it is evident, a solution to our problcn, which i~deed contains ~~ny other factors. Amongst these, the Panel has identified as fundamental : in economic mat-ters, on the one hand the structure of prices and price policies,·acting as strategic signals, .and, on the otfler hand, investments a-s an essential. force in energy savings.; in institutional matters, the adaptation of the "energy chains" to a diversified and more decentralized energy system, and the influence that public authorities can exert through their own purchasing practices ; finally for the longer term devetopmP.nts,

characte-rized in the report by an "imaginative" scenario at the horizon 2030, comes the importance of the social and cultural values which underlie our economic life.

Even though the Panel is fully aware of the inadequacies of its work - rapidly undertaken on a difficult problem in which exact infor-mation is not easily found- it thought it useful to develop a relatively complete set of recommendatio~s. Beyond those which concern an improved understanding of energy savings and further work and study, essential as a basis for political action, t~ese recommendations can be grouped under two headings : a community strategy for an energy-efficient growth, and' a complete pol icy for "dissociation" recommendable to every r1ember State.

Among recommendations for an improvement in understanding, I would bring out the gathering of coherent and up-to-date statistics on the basic energy parameters, the development of global scenarios for the whole of Europe using a common model, and finally the study of a f~nc­

This is indispensable to convince the main forces in the

eco-nomy of the principle which has been stated above, and give it

realit~

in

every sector of energy use. Political

~ction

which limits itself to

pro-moting the elimination of waste without any intervention in the economic

system

or

modification in the strur.ture o'f production and of consumption,

is not sufficient. The changes and renewals which

a~e

the motors of growth

must serve systematically and in co-ordinated way to promote the rational

use of energy.

The involvement and the

under~tanding

of the citizens of the

Member States will be that much greater if political action is seen to

be an ele-ment of a Comr..unity strategy, aiming at ·an energy-efficient growth,

in which every Member State participates fully.

The Panel recommends that this policy be

implem~nted

in three

crucial fields : prices, research and development, and the technical condi•

tions of energy

use.

It is necessary to seek an

a~reement

between Member States

both on the convergence of tneir policies towards covering in the price

of energy the cost of replacement of resources, and on the principles

of

a

market transparency and publicity about costs and prices in the

various

energy

chains.

Secondly, it would oe desirable not only to

pursu~

an important

progra~me

of research, development and demonstration to promote

energy

sa-ving technologies, but also to act upstream and downstream around this

pro-gramme ; upstream, by creating the institutions and the European

structu-res for scientific structu-research by a deepening of the impr·ovement in scientific

co-operation ; downstream, by devoting attention to the economic and social

issues related to the diffusion and effective use of energy-saving

techno-logics.

Finally common minimum standards for technical

performan-ce must be introduperforman-ced by voluntary agreements

or

legal acts for motor ve•

hicles, heating installations and the main domestic appliances, whether

imported or producecf in

~he

Cor,Jmunity.

It seems to us also necessary that a complete and

inte-gral pol icy for "dissociation"between economic gro•.-1th and energy con3ump-.

tion - in particular by a more rational use of energy - should be defined

by the Commission and recommended to Member States.

The Common purpose of the various initiatives would be

to create in each country a.climate favourable to investment and to

inno-vation in the direction of ''dissociation". Our suggestions concern

effi-ciency standards for buildings ; information and publicity ; a network

of advice and audit centres which must be supported by action in training

promoting the means of measurement and

control<~'

and of monitoring ;

final-ly a substant;.al increase in the contribution made

by

financial

institu-tions, both to improve the flow of finance and by the offer of aids to

investors.

However, the

more funaamental changes in the use of

e"-r-gy can only be achieved in the long run, and by the modification even of

lifestyles, of social and cultural values and of the organization of our

settlements. Some trends seem to move in this direction, such as the

growing share of services in production, the slow-down in tHe growth of

_large urban conglomerations,progress in the field of video and data

trans-mission and in microprocessors, and the concern for the ecology.

Governments should encourage these trends, not

restrai-ning them but favouring forms of economic, social and cultural

organiza-tion which are harmonious with them- for example which move in·the

direc-tion of the "decentralized auto-organized society" described in the

report "A Plan for EurQpe",published at the end of 1977.

These leads me naturally, by way of conclusion, to·an

o~servation

on the tining of actions and their effects. It is

diffi-cult to establish such a timing. Our studies should be developed in a

second phase of work. However, the gravity of Europe's energy situation,

and

the

.time i-t takes to reach agreement between

~1ember

States on the

difficult-measures making up common actions, lead me to say that it is

urgent to begin to act upon

the

guidelinas we

reco~mend,

ano the specific

m~asures they

imoly.

U

is necessary to have in view a rapid return - and that

is possible - from the introduction of certain technological improvements, in

particular by putting into place the financial'means, and the

~~eans

for

infor-ma~on

and for advice. The most decisive results will, it is certain, be achieved

in the "longer run. But this is a reason for seeking the• too, as fro.

now~.lt fs

indeed because trees take ti•e to grow that

we

must hasten to plant the•.

ANNEX 1

JmiBJolRS OP '!'BE P.&IIEL

Chairman

Mr Jean

Sa.int-Geoura

Members

Proteaaor tllberto

Cola.bo

Inspecteur des Finances

Chairman

ot

S:EXA. and XETIA

llltematioaal

•ember

ot

the Club

ot

Roae

•ember of the lhergr Ca.iaaiaa

(Pnace)

liela

Bohr

!Dati tutet, Copenhagen Theoretical P~aiciat

Joint author of a report •·U tled "lh•rcr

in Denmark

1990, 2005,

a caae at~" published aa Report lfo.7, IntematiCI'l&l

Federation of Institutes tor &dV&Dced St~, University of Copenhagen, Sept•lMtr 1976 Cbairan

ot

CNDf, Roae

Pro~nor Hellm.t Heue

LacV Xezmet (ElisalHtth YoaDg)

Jlr Oera.ld Leach

Jlr Jacques Jlorea.u

Prot'essor Il.ya Prigogine

Senator Xary Robinson

Professor Hans IC. Schneider

Mr Eric-Jan Tuininga

Dipl.-Ing. Johannes

c.

Welbergen

University of Gattingen

Head of the Ibero-America Inati tute tor Ecpnomic Studies

Author and Lecturer

Senior Fellow at the International

Institute for Environment and Developaent Joint author of "A Low Energy Str&:egy tor the United Kingdom", published b,y :the I.I.E.D. Janua.r,r 1979

For11erl.y with the CFM', Paris Kember of the European Parli&Mnt

Universite Libre de Bruxellea

Nobel Prize winner tor hia work ill 'l'bei'IIO-dynamics

Barrister

Lecturer in European CoiiUIWli

v

Law

Member of the Senate, Dail, Dublin

University of Cologne

Director of the Institute ot IDergr Economics

Engineer and Environmentalist

Member of the T.NO Policy Studies

Oroup,

Netherlands

Formerly Chairman of the Jlanageaent Boarcl

of Deutsche Shell AG.

President and Chief Executive ot the Conference Board in Europe

MAIN POINTS OF THE SAINT-GEOUR~ REPORT ANNEX 2 It is. necessary to seek out the conditions for a

very substantial slackening ot the Close relationship qlobally observed in most industrialjzed countries during the period 1945 to 1973, between economic growth and an increase in·energy consumption; for simplicity of expression we have called this objective "dhsochtion".

For clarity's sake, I believe it to be useful to make two pre-liminary remarks. First, the choice between energies to produce and the problem of energy supply lay out.side the scope

of

the Panel's terms of reference. However they have an incidence on the theme of our reflections. Some forms of energy or methods of conversion of energy ean in f~ct facili• tate "dissociation". Above all the reduction of the extern.1l dependence of Europe for energy supplies is, quite obviously, orae of the main reast)n~ for seeking such a "dissociation".

3. STATEMENT BY COMMISSIONER GUIDO BRUNNER ON THE PUBLICATION OF THE SAINT-GEOURS REPORT ON AN "ENERGY EFFICIENT SOCIETY"

I. From the Nuclear Debates <1977/78> I drew the following conclusions:

a. A Directorate for Energy Saving and the Rational Use of Energy should be set up.

b. Mr Saint-Geours and a group of experts should draw up a report on the possi-bilities of creating an energy efficient society in Europe. This report we now have.

II. The study now being published brings us further along the way towards loosening the tie between energy consumption and the growth of our economies.

Mr Saint-Geours and his group prove that it cannot be done by energy saving alone. We ~re facing the biggest ~ndustrial restructuring of the post war era for which new techniques for rational energy use and oil substitution need to be developed. The investments necessary for this,according to our reckonings,amount to something

like 50 billion dollars every year. In the future the reduction of our oil depen-dence will attain just as great an economic importance as the creation of new jobs and the fight against inflation.

The study also shows to what degree this restructuring is bound up with new ways of arranging our lifestyles. To take just two examples: transport and in the home.

It clearly sets out that all these new ways of arranging our lives presuppose economic growth. Indeed, the report goes further: it emphasises that rational energy use itself is a precondition for economic growth.

III. The experts group has drawn on the most modern experience. They have examined the horizontal ties between the various individual sectors and studied alternative growth scenarios. In this way their report never strays far from political, social and economic realities. Particular stress is laid on the necessity for legislation and information.

IV. Two immediate conclusions can be offered:

a. We shall carefully study the proposal to set up a European data bank for energy saving technology.

4.

REORGANISATION OF THE FRENCH OIL MONOPOLY

1.

Under the law of 1928, the marketing of oil products in France

(whether refined in France

or

not) is controlled by the State through

_firms which are granted "special distribution authorisations" by the

Government. These authorisations are granted

or

renewed every three

years at the discretion of the Govirnment and carry with them quotas

limiti~g

the amount of motor fuel which each authorisation holder is permitted to

market per annum.

The authorisations and quotas were the kingpins in the machinery

by which the French Government gave France a degree of security of

supplies of crude oil and refined products and made sure that the French

refining industry developed.

2.

As early as 1976 the Commission informed the French Government

and the general public1 that, in view of the decisions of the Court of

J~stice,

the discretionary granting of special authorisations and quotas

tu,"'

111otor fuel was not in accordance with the principles of the free

movement of goods between Community countries and non-discrimination

against nationals of those

~ountries.

Indeed, the method was such as

to make access to the French market for products refined in other Member

States more difficult than for products refined in France.

The Commission pointed out, however, that it was aware of the need

to

find a solution to this difficult problem which, whilst complying with the

Treaty, would safeguard the French

~overnment's

legitimate objective of

ensuring security of oil supplies.

3.

It was in this spirit that Mr. Vouel and Mr. Giraud, the French

Minister for Industry, reached agreement after full and detailed

dis-cussions marked by mutual understanding between the Commission and the

French Government.

The result of the agreement is the new oil distribution system

announced

by

the French Government in the Official Journal of the French

Republic of 29 June 1979 in a Notice

~etting

out the conditions subject

to which current distribution authorisations will be renewed before the

end of this year. The conditions are essentially as follows:

- the quantity of motor fuel that authorisation holders are permitted to

apply will no longer be limited, as quotas are being discontinued;

- authorisations will be issued in accordance with objective criteria

based on the legal form of the undertakings and their technical

facilities, particularly storage facilities, in relations to their

throughput;

- authorisation holders must submit, and adhere to, three-year plans

in which the majority of their requirements are covered by

medium-term contracts; contracts may be concluded with refineries in France

or

in other Meml:er States;

1sixth Report on Competition Policy, points 268 to 270.

- authorisation holders will be free to obtain a significant proportion of their supplies (minimum 20X) on the "free" market, with the

under-standing that a certain proportion of spot purchases must in turn be covered by "tide-over" contracts which must also be concluded with Community refineries.

4. The Commission considers that these arrangements may be regarded as regulation of trade conforming to the provisions concerning the free movement of goods in the Treaty, s~nce they:

- are based on the French Government's legitimate objective of securing oil supplies;

- go no further than is necessary to attain this objective;

- subject all oil products marketed in France to the same conditions, regardless of whether they were refined in France or in other Member States.

Once present shortages have been overcome, the new system ensures that the French market will be liberalised and opened up to products refined in other Member States, whilst the French authorities are still able to ensure that operators effectively guarantee continuity of supplies both in the general interest and their own.

5. NEW WAYS TO SAVE ENERGY - COMMISSION SEMINAR IN BRUSSELS

The Commission is organising an International Seminar entitled "New ways to save Energy" in Brussels on 23-25 October 1979.

This seminar, to be opened by Mr Guido Brunner, Commissioner for energy and research, is one of the means by which the Commission intends to ensure the widest possible dissemination of the Research and Development <R&D) results obtained from its

research programmes. The aim of the seminar is to inform representatives of national authorities, public organizations, industries, universities and other interested persons about the results achieved in the implementation of the Community's first Energy R&D programme (1975-1979) which deals with Energy Conservation, New Energy Technologies and Sources and with Energy Systems Modelling.

In the framework of this 11.38 MUCE programme more than 100 contracts on Energy Conservation have been concluded with research bodies throughout the European Community, working on R&D projects covering a range of subjects described below:

Heat pumps: Evaluation of possible heat sources for heat pumps such as air, soil, sewers and groundwater; development of heat pump components and advanced heat pumps systems; heat pump applications.

Houses and buildings: Heating and ventilation systems, improvement of wall and window insulation.

Transport: Improvement of internal combustion engines.

Miscellaneous: Advanced batteries

_.

_,

mater1al and low grade fuel. recycling of waste, energy production from waste

Programmes and information can be obtained at the secretariat of the meeting:

Mr P. ZEGERS

Commission of the European Communities Directorate General XII C 1

Rue de la Loi 200 B - 1049 Bruxelles

Tel. 02/ 735 00 40~ ext. 5845 736 60 OOj ₆₆~₂ 5833

6. COMMISSION SIGNATURE OF I.E.A. IMPLEMENTING AGREEMENT ON THE

ESTABLISHMENT OF A BIOMASS CONVERSION TECHNICAL INFORMATION SERVICE

The Commission has just adhered to a jointly funded agreement of the Paris based International Energy Agency (I.E.A.) establishing a Technical Information Service in the field of Biomass research and development (R I D). The agreement signed on the Commission's behalf by Dr. Gunther Schuster, Director General for Research, Science and Education, was concluded by Austria, Belgium, Ireland, Sweden and the United States in May 1978.

It will be operated by the National Board of Science and Technology of Ireland, and the Service will provide a regular source of information on scientific and

technical data in all areas of energy from Biomass including harvesting, collection, processing, transportation and conversion techniques.

The expected annual contribution of the Commission to this project, which will last at least three vears will be about 4000 EUA (European units of account). It is the

eighth l.E.A. R & D agreement to be signed by the Commission.

7. BEUC COUNCIL ISSUES STATEMENTS ON THE ENERGY SITUATION

BEUC (Bureau Europ~en des Unions de Consommateurs) is a conso~tium of consumer organisations in the Member States of the European Community. It is based in Brussels and its Director is Mr Anthony Venables.

At a BEUC Council meeting on 29 June the following common positions on the current energy situation were adopted.

The energy situation. The BEUC Council was deeply concerned about the implica-tions for the ti~dinary citizen of the recent announcement of oil price increases by OPEC. While reco~nising that, as a result, fuel price increases were

inevitable, they called on the adoption of two principles:

1) first, consumers are unable to plan in the face of haphaz~rd and

uncontrolled Leap~ in the p~ice of energy; governments of the EEC member states should in future make pro'visions to ·mitigate the effects of any inevitable ~ric~ increases and ensure that, as far as po~sible, they happeri in a controlled and p~edictable manner.

2) consumers on Low incomes are particularly hard~hit by sudden Large increases in energy costs. Steps must be taken to ensure .their .·rights to reasonable Living st~ndards and basic .transport means.

More efficient use of energy could prevent a fall in Living standards when costs go up. EEC consumer org~nisations call for specific encouragement to be given to energy conserv~tion by every part of society ~ industry, govern-ment, services and the iridividual consumer. Restrictions on the use of energy, where necessary, should be socially just and should not cause unnecessary de~riv~tion.

In addition there is an urgent need for research into improved methods of energy conserv~tion and into the development of safe and erivironmentally acceptable alternative energy sources.

"Consumers and Energy" Conference. So as ·to tackle the avoidable causes of the so-called energy c'rfsis, the BEUC member organisations ·will be holding a conference in P•ri~ in Spring 1980 to examine Long-term solutions

particu-Larly to the very real problem of waste of existing resources.

Consumer organisations are convinced that with more responsible attitudes being adopted both by the national and international authorities, and by the oil companies, the serio~s situation with which the European Community is confronted could be met without unnecessary hardship to the citizens of Europe. The conference "Consumers and Energy" will:

1) examine the Long-term problems facing consumers given the worsening supply/demand situ•tiori in Europe and increasing cost of certairi imported forms of energy - notably petroleum products.

2) Formulate proposals for the more rational use of energy supplies which exist, and pa~ticularly ex~mine different conservation measures, and ways of persuading all consumers .(including the public authorfties, industry and services) to be Less wasteful.

3) Consider the consumer position on alternative sources of energy.

Copies of a background paper, "Consumers and Energy", can be obtained from the BEUC, 29 Rue Royale, 1000 Brussels, tel. 219.13.30.

8. NEW ACTION PROGRAMME FOR A CONSUMER PROTECTION AND INFORMATION POLICY PROPOSED (1)

The Commission, on a proposal from Mr. Burke, in association with Mr. Davignor, has approved and sent to the Council a draft action programme for the protection of consumers in the Community~ This new programme, which will cover the period 198Q-85, is intended both to carry on the work and aims of the preliminary consumer action programme which ends this year and to break new ground in areas where recent experience has shown that consumer interests ne~d special protectio~ for example, the price of goods and services and the quality of s~rvices.

It is recalled that the prelim~nary programme, which was adopted by the Council on 14 April 1975, was founded on five basic rights of the consumers:

- effective protection. against hazards to health and safety; - effective protection against damage to economic interests; - adequate facilities for advice, help and redress;

- information and education;

- consultation and representation in decision making.

~ summary of th~ most important work carried gut ~in~e 1973 is contained in the annex. The new programme aims t6 continue and intensify the measures taken to promote these five rights while endeavouring to change the emphasis from defensive action of

consumer interests to the more positive action of vigorously promoting these interests. Thus, consumer policy under the new programme will aim at establishing conditions in which consumers can become full partners in the preparation and carrying out of

economic decisions which are important 1o them as buyers and users of goods and services and which can largely determine their living conditions.

In this context, the new programme innovates in proposing that measures to ensure the exercise of the five basic consumer rights need not be limited to formal C~mmunity legislation such as directives, regulations etc., but could also be imple-~ented through agreements, for example, between representatives of producers and/or

distributors on the· one hand and of consumers on the other. The Commission suggests that two areas where such agreements would be appropriate would be after-sales service and oarticular aspects of advertising. The Commission will be prepared in this context to aid and encourage initiatives of a pilot nature in these two areas.

Implementation of the new programme

The following is a summary of the principal actions proposed in the draft programme under the five basic aims.

1. Protection against health and safety hazards

With the aim of making consumer goods safer to use and protecting health, the Community will continue its work on harmonizing the laws on appropriate products such as food-stuffs, textiles, toys, chemical substances and motor car components. Thus for

foodstuffs, further measures will be introduced~dealing with flavouring, surface sprays u~ed on fruit and veqetables, baby foods, deep-frozen foods and pesticide residues. The 1976 cosmetics directive will be updated on the basis of the latest research and the problems of textile inflammability will be studied with particular reference to health risks caused by the use of fire-proofing substances. A directive on toy safety should be drafted fairly soon on the basis dextensive research and also a directive on the advertising of pharmaceutical products.

2. Protection of economic interests

Tbe first programme set out a number of prin~iples under this heading which are still valid and will guide future a~tion. Thus, it was Laid down that consumers should be protected against unfair contracts, terms of credit, advertising, inadequate Labelling and unreliable after-sales service. The Commission has already submitted a number of proposals under some of these various headings <see Annex) but it believes that the time has come to reinforce consumer protection as regards the quality of services and their price transparency. The Commission will make proposals in the following three areas:

a) Commercial services connected with products

The Commission will ex~mine ways of improving the quality of after-sales service, in particular as regards the guarantee p~riod, wider use of fixed estimates, the drawing up of detailed invoices and product transport and out of ser~ice costs and the availability of replacement parts. The Commission will study the means necessary for this purpose, 'with a view to improving conditions of

warranty and after-sales se~vice ~ither by Legislation or, where the case

arises, by agreement between representatives of producers and consumers notably by the improvement of contract clauses. Priority will be given to warranties and services associated with motor v~hicles and household appliances.

b) Commercial. services not connected with products.

Priority will be given to improve services linked with movement of persons, goods·and capital, notably in the field of transport and tourism.

c) Public and quasi-public services.

In most cases the prices and quality of these services are not determined by consumers but by the administr~tive authdrities responsible. The Commission will encourage these authdrfties to consult consumers and users, and make a report on consumer represent~tion vis-i~vis the public se~vices, in particular those having an international character such as telecomm~nications with a view to putting forward proposals if needs be.

3. Improvement of protection at law

The Commission will continue to study procedures and channels for obtaining legal remedy in the Member States, pa~ticularly the right of consumer associa-tions to institute a civil action, the simplificat1on of court procedures and the processing of individual p~tftions, the development of amicable settlement procedures and the admissibility of proceedings against public authorities. The Commission will also continue to aid national or local schemes facilitating consumers' access to the courts and the settlement of the more common or minor disputes, and will publish the results.

4. Information and education

Particular attention will be paid to information on prices and to ensuring that consumers are better informed on the value of products and services on offer and on price variations in thei~ particular Localities. With these aims in view, the Commission will:

- continue its surveys on prices and distribution networks and publish the results;

- encourage schemes to improve local or regional information on prices and price comparisons;

- analyse the results of the surveys of prices of goods and certain services and if necessary the price variations and their origin.

5. Consultation and representation

Under this heading, the Commission wiLL send the Council a communication on

the representation of consumer associitions, criteria for representation and

approval procedures already operating in Member States or

~hich

could be

encouraged. The Commission wiLL continue, and where possible increase its

a~d

to European consumer associations, coritinue to guarantee proper

re~resenta­

t1on.of.consumers on

~he.sp~c~ilized

advisory committees set up by the

Comm17s1o~.

The Comm1ss1on w1LL also encourage consultation between European

organ1sat1ons for consumers and the different business interests concerned

and wiLL promote the adequate representition of consumers in standards

organisations.

ANNEX - Summary of the most important work carried out and results obtained

since

1973

in the field of consumer

prote~tion

and information

The most important work carried out at Community Level under the European

Community's consumer protection and information policy and the results obtained

are described below under the five basic rights Listed in the Preliminary

Programme.

A.

Protection of consumer health and safety

The Council has adopted some 35 directives and is discussing several other

proposals, both under the programme to remove technical barriers and under the

preliminary consumer protection and information programme. These directives

concern:

(i) Foodstuffs: since

1976

the Council has adopted several directives,

including a 'Directive on the LabeLLing of foodstuffs, Directives on

the composition of foodstuffs and materials which

com~

into contact

with them, and a Directive on the indication of the prices of foodstuffs.

(ii) Cosmetics: in

1976

the Council adopted a Directive on the composition,

Labelling and packaging of cosmetics .Listing

361

prohibited substances

and providing for the gradual establishment of positive Lists.

(iii) Safety in the use of products: a Directive on the marketing and use of

certain dangerous substances was adopted in

1976

and severaL proposals

are being prepared on household products and toys.

The Commission has also sent the Council a proposal to set up an information

system for accidents in the home.

In carrying out this work, the Commission has consulted the several specialised

committees which it had set up. These include the Scieritffic Committee for

Foodstuffs, the Scientific Committee for Feedingstuffs, the Advisory Committee

on Foodstuffs, the Scientific Committee on Cosmetics and the s·cientific Committee

on Pest fc ides.

B. Protection of consumers' legal and economic interests

Several proposals for

~irectives ~hich

could have an

appr~ciable

effect on

the protection of consumer interests are being discussed by the Council, on

the following subjects:

sales negdtiated away from

~usiness

premises;

- home study courses;

- misleading or unfair

adve~tising;

- product

Li~bility.

The Commission recently presented a proposal concerning consumer credit.

c.

Redress

The Commission organised a symposium towards the end of 1975

~hich

examined

the possibilities open to consumers for seeking Legal

re~~dies

and the means

for

m~king

it easier for them to bring cases before a court of Law.

The

Commission has continued its study of the

v~rious n~tional

systems of grants

and Limited

fi~ancial

support to a number of

pra~tical exp~riments

in the

Member States.

D.

Consumer education and information

The Commission has Launched a wide range of measures:

Ci>

fgo~~m~r-iotgrm~!igo_go_!h~_£h~!~£!~ri~!i£~_gt_erg9~£!~=

a proposal for a Directive, already mentioned, en the Labelling and

presentation of foodstuffs and a proposal for a

Dire~tive

on the

consumption of energy have been sent to the Council, and several

texts, concerning in particular textiles and dangerous products, are

now in preparation.

Cii>

£go~~!!!~t-iotgrm~!igo_go_!h~_t9!!!!~!igo_gt_eri£~~l

a Directive on the marking and display of the prices of foodstuffs was

sent to the Council' in May 1977 and will shortly be adopted by the

Council.

Various Commission

depa~tments

have collaborated in a survey on prices

and commercial margins which will be used as a basis for a study of

the conditions governing the formation of prices of certain common

consumer goods.

Ciii)

a-~~IDe2~i~ID-20-£20~~ID~!-i019!!!!~!i90,

held by the Commission in 1977,

prdvided the

opport~nity

for a

constru~tive

dialogue between trade

org~nis~tions

and consumer

represent~tives.

Civ>

§~O~!~!-i012!ID~!i9o:

the Commission continued to supply information

about measures taken in the consumers' interest to members of

parliament, journalists and

~adio

and television

p~oducers

and

published several documents and periodicals, including the weekly

Euroforum. A survey of 10 000 consumers was conducted in October 1975

to obtain a better picture of their opinions, behaviour and desires.

Cv)

f20~~ID~!-~.9~£s!i2D-i!J_§£h99!~=

the Commission is preparing monographs

on the Member States and convened a seminar in London in 1977, which

was attended by more than eighty teachers, experts and representatives

of consumer organisations. On the basis of the

concl~sions

of this

seminar, the

Co~mis'sion

establi.shed a network of pilot schools in

collaboration with the authdrities of the Member States and set up a

wo~king

group on the

t~aining

of teachers in consumer protection.

!.

Consumer reeresentation

In 1973 the Commission set up a Consumers Consultative Committee and provided

know-how and material aid for its operation: .sixty or so

me~tings

of the fuLL

Committee or its

Ste~ring

Committee together with around twenty working groups

have produced thirty dpinions which have been sent to the

Co~miSsion.

The

Besides delivery of op1n1ons on the Commission's proposals, the European Parliament and the Economic and Social Committee have held debates on the

broad direction of consumer protedtion and inform~tion pdlicy in the Community, and drafted reports on specific areas which the new programme will take into account.

Furthermore, the Large number of written and oral questions asked by the members of the European Parliament over the past four years bear witness to Pa~Liament's interest in consumer protection activities at Community Level.

Finally, the Commission has cooperated very closely with the Council of Europe and the OECD. It has also had occasion to establish useful contacts with the appropriate authorities of the United States and Sweden.

9.

IRISH CONGRESS OF TRADE UNIONS ANNUAL CONFERENCE, BUNDORAN, 3•6 JULY

1979

The Irish Congress of Trade Unions' Annual Delegate Conference was held in Bundoran, Co.Donegal, from 3 - 6 July, 1979. The Conference was attended by 606 delegates from affiliated unions and trades councils.

The Conference was addressed by fraternal delegates from the Scottish TUC, the British TUC, and the European Trade Union Confederation. Observers were present from the W.C.L., the ICFTU, the W.F.T.U., the AUCCTU, and the European

Commission.

The Agenda for the Conference listed 75 Motions. Under the heading of industrial policy and industrial relations, Motions were debated on job creation, full employment, public holidays, national statutory minimum wage, overtime, micro-electronics.

A Motion was adopted on the Reform of Company Law to take account of the requirements of the EEC's Fourth Directive on Company Law. This Motion called on the Government to ensure that all Companies, without exception, publish financial and other information on an annual basis, that the inform-ation conforms with strict disclosure requirements, that~-to-date financial and other information of the type published annually, which ismlevant to

employees for collective bargaining purposes, be provided on request to workers and their representatives, as of right; that Companies be so structured as to facilitate the introduction of worker participation at all levels.

The Conference also adopted a Motion deploring the fact that despite prolonged discussions, the Government has not yet seen fit to ratify the ILO Workers' Representatives' Convention, adopted in 1971.

The Conference debated no less than thirteen Motions on taxation and a review of the FAYE System of taxation. The Conference adopted Motions calling on the Executive Council to make continual representations to the Government, seeking amendments to the income tax system now in operation, with the purpose of establishing a tax system which can be applied equitably to all sections of the Community.

Under Economic Policy the Conference debated the importance of a National Development Corporation in strategic industrial planning, job creation, job security, and industrial democracy.

10. BRITISH TRADE UNION VISITS .TO BRUSSELS

A.

Visit to Brussels by National Education Officers of TUC affil.iated unions

A group of five British national trade union education officers and one official

from the TUC Education Department made a two-day information visit to Brussels

on 20-22 June 1979. The vtsit, funded by the Trade Union Information Division

of the

Co~mission,

arose out of discussions within the Trade Union Education

Officers' Group - a body composed of national training and education officers

of TUC affiliated unions.

The programme for the vtsit covered a wide range of subjects of interest to

trade unions. This included discussions on the functions, operation and

inter-relationships of the main Community

instit~tions;

a visit to the

Commission's TV and radio studio; an afternoon visit to the European Trade

Union Institute; discussions at the European Trade Union Confederation; a

meeting with Herr Otto Staadt, Secretary of the European Trade Union Committee

of Food and Allied Workers in the Community; discussions in the Commission on

employment policy and the Tripartite Conference; developments in the field of

educational Leave and exchanges of young workers, and finally a meeting at the

Economic and Social Committee.

This visit was the first made by a group of union education officers, and it

is anticipated that a further group will visit Brussels during 1979.

B.

Visit to Brussels by the TUC Women's Group

On 13-15 June, a group of 11 women trade unionists from TUC affiliated unions

and Miss Ethel Chipchase, Secretary of the TUC Women's Advisory Committee,

were in Brussels for a two-day information

~isit

to the European Commission.

The programme for the visit, whilst emphasising the implications of Community

developments for women, was wide-ranging, covering on the first day Community

instit~tions

and

decision-t~king, development~

in Community policies and

Legislation for women, consumer affairs and

educ~tional

policies. The group

was also received by Mr Henk Vredeling,

Commi~sioner

for Employment and Social

Affairs and Vice-President of the

Co~mission.

The second day of the visit

covered employment ptilicy and the Tripartite Conference, the Regional and

Social Funds and the Common Agricultural Policy.

11. BRITISH TRADE UNIONS OPPOSE PROPOSED CHANGES IN LABOUR LEGISLATION

Following the change of government' in the United Kingdom in May 1979, changes

in existing Legislation and proposals for new

L~gisl~tion

affecting traditionally

important trade union rights

~nd fr~edoms

have been presented by the new

government. The General Secretary of the TUC, Mr Len

Murra~

together with

other TUC representatives has had several meetings to discuss these

develop-ments with the Secretary of State for Employment, Mr James Prior.

The TUC is concerned at the prospect of the government making substantial

amendments to existing Legislation which will affect trade union recognition

and the rights of individual workers, especially the Low-paid. The new

1

Legislation proposed by the government would modify the legal situation with

the government that it would be ill-advised to proceed on the assumption that the trade unions wo~Ld finally agree to the proposed Legislation, and has stressed the error of proc~eding with such Legislative changes. At the same time the TUC has been stressing the role played by the trade unions and the TUC in improving industrial relations in British industry.

The TUC Employment Policy and Organisatic~ Committee met on 18 July 1979 to discuss Government working papers on industrial relations legislation, and the following press statement was released:

The TUC's Employment Policy and Organisation Committee met this morning and discussed the three working papers on proposed

industrial relations legislation which have been issued recently by the Government.

The Committee could not accept the Government's claim that its proposals are limited. On the contrary, if the proposals were enacted they would represent a major challenge to the existing rights of workers and their trade unions. For example, the proposals on picketing, which the Government have claimed are directed only at so-called "secondary" action, would also have profound implications for "pz:imary¥· action. Removing the right of trade unions to induce breaches of commercial contracts would

leave trade unions vulnerable to legal actions brought by employers, customers and suppliers. Most industrial action has this effect. The proposals could also debar union officials from joining members on picket lines and prevent the union from organising the picket effectively and peaceably.

The proposals on the closed shop could also have serious effects on industrial relations in many industries and s.ectors. If the proposals were implemented, i t would become very difficult to

establish effective new closed shops and this would make it harder for employers and unions in certain industries to establish and sustain stable organisational and negotiating arrangements. The Committee took particular exception to the suggestion that a code of practice could contain a provision allowing for existing agree-ments to be reviewed. Such a provision would undoubtedly cause disruption to some established bargaining arrangements.

12. ETUC/UNICE MEETING

At the request of the European Trade Union Confederation, ETUC and UNICE delegations met in Brussels on Friday 13th July ·1979.

The ETUC's request w~s with a view to seeking the serious problems situation in Europ8.

for discussions at European level solutions on a Eurc~ean scale to facing the economy and the social

The two delegations agreP.d on the necessity of such a

dialogue and arranged a second meetin~ for 19th September, which would also be attended by the European Commission.

It was agreed that the CoMmission would attend in an observer capacity and would ~ossibli' also give advice on technical matters.

It was further agreed that the o~ly item on the agenda of the meeting in September would be the organisation of working tiMe.

The following persons attended the meeting on 13th July :

ETUC \•!. Ko k

f'l • Hi n t e r s s h ::; i d

J.I. Ng,lsund F. Stae~elin P. Coldrick

UN ICE s·assen

Provost Oechslin Petersen Cast in

13.

LETTER FROM THE ETUC TO MEMBERS OF THE EUROPEAN PARLIAMENT AT ITS OPENING FOLLOWING THE FIRST EUROPEAN ELECTIONS

On

13

July

1979,

the General Secretary of the European Trade Union Confederation, Mr Mathias Hinterscheid, addressed the following Letter to the Presidency of the Parliamentary Assembly of the European Economic Community:

"on the eve of the first meeting of the European Parliament, which was elected for the first time by direct suffrage, I woulJ like to remind you that we have sent to all those elected ~ co~y of the General Resolution adopt8d by the 3rd Statutory Congress of the European Trade Union Confederation, which was held in Munich in May 1979. This General Resolution contains the most important and the most urgent demands and proposals of the European trade union movement.

In the face of the very serious economic situation which we have been experiencing fQr some years, a large part of tho decisions taken at this Congress are devoted to the problem of unemployment and to proposals fer the maintenance and improve-ment of the working and living conditions of workers.

For these reasons, we would ask you to devote a large part of the discussions to the fate of workers and their families; their fate is all the more uncertain because recent events on the

international scene do not give a~ indication of fundamental improvements in the near future.

We would bB gr~teful if you could be the spokesman for workers and their trcde unions at this important assembly."

Preu end lnformltlon Offic• COMMUNITY COUNTRIES

BELGIUM

Rue Archimilde 73, 1049 Bruxellea Archimedestraat 73. 1049 Brussel Tel. 7350040· 7358040

DENMARK Gammel Torv 4 Postbox 144 1004 Kobenhavn K Tel. 144140 145532

FEDERAL REPUBLIC OF GERMANY ZitelmannstraBe 22

5300 Bonn Tel 238041

Berlin (branch of Bonn Office) Kurfurstendamm 102 100 Berlin 31 Tel 8864028 FRANCE

61, rue des Bellea-Feuilltl 75782 Paris Cedex 16 Tel. 5535326 ITALY Via Poli 29 00187 Roma Tel. 689722 LUXEMBOURG B6timent Jean Monnet Rue Alcide de Geaperi Luxembourg-Kirchberg Tel. 43011

IRELAND 29 Merrion Square Dublin 2

Tel. 760353 NETHERLANDS Lange Voorhout 29 Den Haag Tel. 469326 UNITED KINGDOM

20 Kensmgton Pa:ace Gerdlnt London W8 400

Tel. 7278090 Edinburgh (branch of London Office) 7 Alva Street Edinburgh EH24PH Tel. 2252058 Cerdiff (Branch of London Office) 4 Cathedral Road PO Box 15 Cardiff CF 1 1 WF Tel 371631

20

THIRD COUNTRIES

CANADA

Association House (Suite 11101 350 Sparks Street

Ottawa Ont. KIR 7S8 Tel. 2386464 CHILE

Avenoda Rocardo Lyon 1177 Santiago 9

Postal address Casilla 10093 Tel. 250555

UNITED STATES 2100 M Street. NW Suote 707

Washongton DC 20037 Tel. 12021 8728350 New York (Branch of Washington Office) 1 Dag Hammarskjold Plaza 245 East 47th Street New York NY 10017 Tel. 1212) 3713804 GREECE

2, Vasstlissis Sofias T.K. 1602

Athina 134

Tel. 743982;7439831743984 JAPAN

Kowa 25 Building 8-7 Sanbancho Chiyoda-Ku Tokyo 102 Tel. 2390441 SWITZERLAND Case postale 195 37-39, rue de Vermont 12011 Geneve 20 Tel. 349750 TURKEY 13, Bogaz Sokak Kavakl iderll Ankara